Legal and General takes over lifetime mortgage provider

Chris Papadopoullos was City A.M.'s economics reporter until February 2016.

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Chris Papadopoullos

THE UK’S biggest fund manager Legal and General has purchased mortgage provider Newlife Home Finance for £5m.

Newlife Home Finance offer lifetime mortgages that allow customers to borrow against the value of their property and then pay the loan back once they die or go into long-term care.

“Going forward we believe an increasing number of people will access their housing wealth to help provide extra retirement income,” Legal and General said in a statement.

“We are looking forward to being part of Legal and General and to continue to build on the successful base we’ve established in the lifetime mortgage market. The changes to the pension market from April mean that there are exciting opportunities in this market for the future,” said Peter Lucas, co-founder of Newlife.